Two of China’s main know-how gamers, Ant Group and JD.com, have put their ambitions to problem stablecoins in Hong Kong on maintain, following clear indicators from Beijing that such private-sector forex issuance could also be off-limits for now.
Over the summer season, each firms had proven curiosity in becoming a member of Hong Kong’s new pilot programme for fiat-backed tokens. Ant had introduced plans to use for a licence to problem stablecoins within the territory as soon as its licensing regime got here into impact on Aug.1.
JD.com, too, was reported to be lobbying for an offshore yuan-oriented stablecoin by way of Hong Kong.
Hong Kong’s Stablecoin Goals Face Mainland Resistance
Nonetheless, the temper has shifted. The Monetary Occasions reported Sunday that officers on the Individuals’s Financial institution of China (PBoC) and the Our on-line world Administration of China (CAC) instructed the companies to pause or abandon strikes to problem or again stablecoins from Hong Kong.
In accordance with FT, Alibaba’s Ant Group and JD com have paused their plans to problem stablecoins in Hong Kong after receiving directions from Chinese language regulators, together with the PBOC and CAC, to halt the initiatives. Hong Kong handed a Stablecoin Invoice in Could establishing a licensing…
— Wu Blockchain (@WuBlockchain) October 19, 2025
Their principal fear is that if massive tech companies or brokerages start issuing tokens that operate like forex, it may weaken the central financial institution’s authority. One individual instructed the FT that regulators are centered on making certain that the best to problem cash stays solely with the state, not non-public firms.
Hong Kong’s stablecoin licensing regime had created a brand new frontier. The territory’s de facto central financial institution, the Hong Kong Financial Authority (HKMA), rolled out the framework after laws was handed in Could, opening a channel for token-issuers backed by fiat forex.
Officers Shift From Enthusiasm To Restraint On Hong Kong Stablecoins
Some officers in mainland China initially noticed the programme as an opportunity to develop the renminbi’s attain past nationwide borders. They believed that yuan-pegged stablecoins issued by Hong Kong may assist counter the dominance of US dollar-backed tokens worldwide.
Nonetheless, that optimism pale by late August. At a closed-door discussion board, former PBoC governor Zhou Xiaochuan urged a extra cautious method. He warned that stablecoins may simply develop into automobiles for hypothesis and even fraud. He additionally questioned whether or not they actually added worth to on a regular basis retail funds.
By then, Beijing’s tone had clearly shifted. Regulators started prioritising monetary stability and state management over fast innovation within the digital forex area.
Tug Of Warfare Emerges Between Hong Kong’s Openness And Beijing’s Management
Regulators made it clear that non-public firms issuing currency-like tokens should yield to China’s precedence of preserving financial management. Innovation, of their view, can not come at the price of sovereignty.
For Ant and JD.com, the timing couldn’t be extra delicate. In June, Ant introduced plans to use for a stablecoin licence. But by mid-October, each companies had quietly stepped again, following Beijing’s steerage to pause.
The transfer captures a rising pressure between Hong Kong’s push to construct a world digital asset hub and Beijing’s choice for restraint. Whereas Hong Kong continues to just accept functions, authorities have already cautioned that just a few licences might be authorised at first, and solely after rigorous scrutiny.
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